India: SteelMint's billet index falls INR 50/t d-o-d on weak purchase enquiries - 22 Jul

SteelMint's billet index fell slightly by INR 50/tonne (t) d-o-d to INR 40,550/t exw-Raipur on 22 July, 2023.

Low enquiries in the semi-finished steel market led to limited trading activity today. Buying activity in the finished steel segment also remained sluggish amid heavy rainfall.

Transactions of 1,800 t were recorded today in Raipur as against 2,000 t on 21 July.

SteelMint's assessment of rebar prices showed a decrease by INR 200/t d-o-d, while wire rod prices remained stable. Today, sponge iron prices in Raipur decreased by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,400/t.

Rationale -

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.

• Transactions (T1) - Five trades at INR 40,500-40,600/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40,520/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 40,575/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,548/t, rounded to INR 40,550/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology